China also is bidding $1.2 billion dollars for the Los Angeles Dodgers.
They buy bonds and notes.
Quibble really, but that is not a loan.
They buy them on the open market.
From what I have read and heard, the chinese are just one of many partners in the deal for the dodgers.
Really, this whole bit about the chinese buying into america?
Just a replay of japan doing so. South Korea doing so, etc.
The US added no new jobs for the month of August 2011. That's the first time that no new jobs have been added since the recession of 1945. The recession of 1945 (between February and October 1945) was triggered by WW2 demobilisation with GDP plummeting 11% in 1946.
The big issue with the Chinese loans is that the US is squandering the money with federal deficit spending of $1.6 trillion per year.
I think the Chinese are more focused nowadays on the commodities, primarily gold and silver than bonds. In case the shtf, inflation will become the world's primary concern and the metals will skyrocket.
The US has entered a recession. After the election NBER will get around to declare it.
Food costs are spiking out of control and in India the costs are rising in the double digits.
That doesn't make sense to me. You only buy goods and services when they are offered to you as they are available.Quote:
When they start spending it, there will be too much money chasing too few goods and services.
If you have enough money to spend, anything can be had.
Look at countries where food costs are extremely high, there are people in those countries eating quite well as they have to money to purchase what little is available.
Look at the USA.
If you have enough money, there is plenty of goods, services, and food available to you that is not available to those with less money.
Ferrari, Bentley, etal have the vehicles for you.
Go to a liquor store in a middle class to lower neighborhood and look at the selection.
Then go to a liquor store in a high class neighborhood.
There is a big difference in the offerings and the prices.
China can use her money to buy stuff that other countries will be priced out of the market for.
Stocks edge lower after unemployment claims spike
Stocks waver ahead of Bernanke, Obama speeches - Yahoo! Finance
China is already spending its pile of cash. Just look at the Chinese presence in the real estate market in Canada!